diff --git a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecification.kt b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecification.kt
index 1aaf71d5176..9974f05b898 100644
--- a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecification.kt
+++ b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecification.kt
@@ -7,7 +7,9 @@ package org.jetbrains.kotlin.backend.konan
 
 import org.jetbrains.kotlin.descriptors.ModuleDescriptor
 import org.jetbrains.kotlin.ir.declarations.IrDeclaration
+import org.jetbrains.kotlin.ir.declarations.IrFile
 import org.jetbrains.kotlin.ir.declarations.IrModuleFragment
+import org.jetbrains.kotlin.ir.declarations.IrPackageFragment
 import org.jetbrains.kotlin.library.KotlinLibrary
 
 /**
@@ -20,5 +22,6 @@ interface LlvmModuleSpecification {
     fun containsLibrary(library: KotlinLibrary): Boolean
     fun containsModule(module: ModuleDescriptor): Boolean
     fun containsModule(module: IrModuleFragment): Boolean
+    fun containsPackageFragment(packageFragment: IrPackageFragment): Boolean
     fun containsDeclaration(declaration: IrDeclaration): Boolean
 }
diff --git a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecificationImpl.kt b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecificationImpl.kt
index c17084ffb3c..dfae43f4018 100644
--- a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecificationImpl.kt
+++ b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/LlvmModuleSpecificationImpl.kt
@@ -8,7 +8,9 @@ package org.jetbrains.kotlin.backend.konan
 import org.jetbrains.kotlin.backend.konan.ir.konanLibrary
 import org.jetbrains.kotlin.descriptors.ModuleDescriptor
 import org.jetbrains.kotlin.ir.declarations.IrDeclaration
+import org.jetbrains.kotlin.ir.declarations.IrFile
 import org.jetbrains.kotlin.ir.declarations.IrModuleFragment
+import org.jetbrains.kotlin.ir.declarations.IrPackageFragment
 import org.jetbrains.kotlin.library.KotlinLibrary
 
 internal abstract class LlvmModuleSpecificationBase(protected val cachedLibraries: CachedLibraries) : LlvmModuleSpecification {
@@ -24,6 +26,9 @@ internal abstract class LlvmModuleSpecificationBase(protected val cachedLibrarie
     override fun containsModule(module: ModuleDescriptor): Boolean =
             module.konanLibrary.let { it == null || containsLibrary(it) }
 
+    override fun containsPackageFragment(packageFragment: IrPackageFragment): Boolean =
+            packageFragment.konanLibrary.let { it == null || containsLibrary(it) }
+
     override fun containsDeclaration(declaration: IrDeclaration): Boolean =
             declaration.konanLibrary.let { it == null || containsLibrary(it) }
 }
diff --git a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/NewIrUtils.kt b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/NewIrUtils.kt
index 1706ff71686..27ff8f9cba4 100644
--- a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/NewIrUtils.kt
+++ b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ir/NewIrUtils.kt
@@ -114,6 +114,11 @@ internal fun IrExpression.isBoxOrUnboxCall() =
 val ModuleDescriptor.konanLibrary get() = (this.klibModuleOrigin as? DeserializedKlibModuleOrigin)?.library
 val IrModuleFragment.konanLibrary get() =
     (this as? KonanIrModuleFragmentImpl)?.konanLibrary ?: descriptor.konanLibrary
+val IrPackageFragment.konanLibrary get() =
+        if (this is IrFile)
+            this.konanLibrary
+        else
+            this.packageFragmentDescriptor.containingDeclaration.konanLibrary
 val IrFile.konanLibrary get() =
     (metadata as? KonanFileMetadataSource)?.module?.konanLibrary ?: packageFragmentDescriptor.containingDeclaration.konanLibrary
 val IrDeclaration.konanLibrary: KotlinLibrary? get() {
diff --git a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/NativeInlineFunctionResolver.kt b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/NativeInlineFunctionResolver.kt
index 622a8cfe2c9..eb938d34798 100644
--- a/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/NativeInlineFunctionResolver.kt
+++ b/kotlin-native/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/lower/NativeInlineFunctionResolver.kt
@@ -15,6 +15,9 @@ import org.jetbrains.kotlin.backend.konan.Context
 import org.jetbrains.kotlin.ir.declarations.IrFunction
 import org.jetbrains.kotlin.ir.symbols.IrFunctionSymbol
 import org.jetbrains.kotlin.ir.util.dump
+import org.jetbrains.kotlin.ir.util.file
+import org.jetbrains.kotlin.ir.util.fileOrNull
+import org.jetbrains.kotlin.ir.util.getPackageFragment
 
 // TODO: This is a bit hacky. Think about adopting persistent IR ideas.
 internal class NativeInlineFunctionResolver(override val context: Context) : DefaultInlineFunctionResolver(context) {
@@ -39,7 +42,7 @@ internal class NativeInlineFunctionResolver(override val context: Context) : Def
 
         LocalClassesInInlineLambdasLowering(context).lower(body, function)
 
-        if (context.llvmModuleSpecification.containsDeclaration(function)) {
+        if (context.llvmModuleSpecification.containsPackageFragment(function.getPackageFragment()!!)) {
             // Do not extract local classes off of inline functions from cached libraries.
             LocalClassesInInlineFunctionsLowering(context).lower(body, function)
             LocalClassesExtractionFromInlineFunctionsLowering(context).lower(body, function)